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Scrushy Has a Tough Week
Although Richard Scrushy was found not guilty in his initial criminal trial, he has not been as fortunate in other matters. This past week, the Alabama Supreme Court ruled that the former CEO of HealthSouth owes HealthSouth "$51.5 million" "as repayment for bonuses he earned while" at the company. (see Alabama News here) (see also…
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Computer Hacker Gets Three Years
A computer hacker who launched a "botnet" into the system was given a sentence of three years. (See Seattle Times here; Yahoo News here). The government asked for six years. According to Yahoo news, the computer attack "hit tens of thousands of computers" including a hospital. He plead guilty to "one count of conspiracy to…
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White Collar Crime Prosecutions Up 8.5 % from Last Month
The latest Syracuse Trac Reporting on DOJ white collar crime statistics shows an increase this month in the number of cases being prosecuted in comparison with last month. (see here). And as has been the case for the last five years, bank fraud continues to be the number one charge being used, with mail fraud…
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State Dept. Official Charged with Bribery
State Department officer Michael O’Keefe has been for accepting jewelry and trips to Las Vegas and New York for himself and two "exotic dancers" from Sunil Agrawal to facilitate the issuance of visas to workers at Agrawal’s business, STS Jewels (website here). O’Keefe and Agrawal are both charged with violating Sec. 201(b), the bribery provision…
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New Jersey Doctor Charged With Using Fake Botox on His Patients
New Jersey physician Albert Poet was charged with 13 counts of mail fraud and one count of selling a misbranded drug for giving his patients a cheaper, unapproved drug for what his patients thought were Botox treatments. According to a press release (here) issued by the U.S. Attorney’s Office: Poet, a licensed physician, owned and…
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Kentucky Governor Reaches Settlement to Dismiss Criminal Charges
Kentucky Governor Ernie Fletcher reached an agreement with Attorney General Greg Stumbo to have the misdemeanor charges of violating state personnel laws dismissed. Governor Fletcher was accused of violating the state’s merit hiring policies by making political affiliation a key to retaining one’s position with the state, and he earlier pardoned everyone in his administration…
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Bookkeeper Embezzles $2.3 Million to Buy Lottery Tickets
Annie Donnelly entered a guilty plea to stealing $2.3 million from her employer, a medical practice, to buy lottery tickets over the past three years. She was buying upwards of $6,000 worth of tickets a day, and a clerk in a story where she made her purchases is quoted as saying, "I don’t think I’ll…
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Fannie Mae Dodges a Criminal Bullet
Mortgage giant Fannie Mae, a federally-chartered corporation, avoided being charged with any crimes related to accounting problems at the company dating back to 1998. The Department of Justice concluded its criminal investigation of the company and notified it that charges would not be file in the case, and apparently none will be pursued against individuals. …
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Here’s Kobi! Former Comverse CEO Alexander Found in Sri Lanka — No, Namibia
After asking "Where the heck is Kobi Alexander?" (earlier post here) the answer is: Sri Lanka — Namibia. Check an updated blog post here. The rest is what was written on August 24: Israeli newspaper Ma’ariv reports (Marketwatch story here) that a private investigator tracked Alexander through an internet telephone call he recently placed to…
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Deferred Prosecutions Come of Age
The Department of Justice’s decision to enter into a deferred prosecution agreement with Frank Quattrone may signal that this device will be used in a broader array of white collar cases and not just for corporations. An article in the Wall Street Journal (here) discusses the developing use of these agreements in investigations of corporate…
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